New Seminar Paper
New Seminar Paper
New Seminar Paper
Marketing Strategies of
Cloud Computing
Services
By
Soumyajyoti Kundu
PGDM-IB (2010-12)
ROLL NO: 26
MARKETING STRATEGIES OF CLOUD
COMPUTING SERVICES
What is a cloud?
Cloud computing is a term used to describe a platform and application. A cloud provisions
dynamically computing platform, configures, reconfigures and depravity servers as
needed. Servers in the cloud can be physical or virtual machines. Often include other
advanced cloud computing resources such as storage area networks (SAN), network
equipment, firewalls and other security devices.
Definition
• Have a variety of different workloads, including back-end batch style jobs and interactive
user facing applications
• Allow workloads to be deployed rapidly and expanded through the rapid provisioning
virtual machines or physical
• Support redundant, self-healing, highly scalable programming model that allows workloads
to recover from many inevitable failures of hardware / software
Cloud computing environments support grid computing & quickly provide physical and
virtual servers on that network applications can run. Cloud computing should not be confused
with grid computing. Grid computing is to divide a large task into many smaller tasks that are
executed in parallel on different servers. Grids require a lot of teams, usually in the
thousands, and often used by servers, desktops and laptops.
Clouds also support the network environments such as Web architecture running three-level
standard and Web 2.0 applications. A cloud is a collection of computer resources due to
cloud provides a mechanism to manage these resources. Management includes provisioning,
change requests, imaging, rebalancing the workload provisioning and monitoring.
Benefits
Cloud computing infrastructure can enable companies to achieve more efficient use of IT
hardware and software investments. They do this by breaking down physical barriers inherent
in isolated systems, and automation of systems management group as a single entity. Cloud
computing is an example of a virtualized system ultimately, and a natural evolution for data
centres using automated systems management, workload balancing, and virtualization
technologies.
A cloud infrastructure can be an efficient cost model for the provision of information
services, reducing the complexity of the management, promotion of innovation and increased
responsiveness by balancing workload real time. The cloud can launch Web 2.0 applications
quickly and to extend the applications as needed when needed. The platform supports
traditional Java ™ and Linux, Apache, MySQL, PHP (LAMP) stack-based applications and
new architectures, such as MapReduce and Google File System, which provide a means to
scale applications across thousands of servers to time. Large amounts of computer resources
in the form of Xen virtual machines can be provisioned and available for new applications in
minutes instead of days or weeks. Developers can access these resources through a portal and
put into practice immediately. There are several products available that provide the
capabilities of the virtual machine, including property, such as VMware, and open source
alternatives, such as XEN. This document describes the use of XEN virtualization. Many
customers are interested in cloud infrastructures to serve as platforms for innovation,
especially in countries that want to encourage the development of a highly skilled workforce
of high technology. Wish to provide new businesses and research organizations with an
environment conducive to the exchange of ideas and the ability to rapidly develop and deploy
prototypes of new products. In fact, HiPODS portal has hosted IBM innovation in a
virtualized cloud infrastructure in our laboratory in Silicon Valley for nearly two years. We
innovate over seventy actions at a time, with every innovation an average of six months. 50%
of these innovations are projects Web 2.0 (search, collaboration and social networks) and
27% are converted into products or solutions. Our success with innovation portal is
documented in the history of business August 20 Week covering the global collaboration.
Usage Scenarios
Cloud computing can play an important role in a variety of areas including domestic pilots,
innovations, virtual worlds, e-commerce, social networking and search. Here we summarize
several basic usage scenarios, but important to highlight the breadth and depth of impact that
cloud computing can have on a company.
Internal innovation
Innovative online request resources through a simple Web interface. You specify a start and
end dates of your pilot. A cloud resource manager approves or rejects the request. Once
approved, the provisions of cloud servers.The innovator have the resources available for use
within a few minutes or an hour depending on the type of resource requested.
Virtual worlds
Virtual worlds require large amounts of computing power, especially in virtual spaces
become larger and as more and more users come online massively multiplayer online games
(MMPOG) are good examples of virtual worlds significantly large. Several commercial
virtual worlds have up to nine million registered users and hundreds of thousands of servers
that support these environments.
E-business
In e-business, scalability can be achieved by making available the new servers as needed. To
example, during the selling season, more virtual servers can provide for the meet the demand
of buyers in height. In another example of a company may have high workloads on weekends
or evenings rather than early morning and weekdays. There are more opportunities for
efficiency in the cloud grows. Another aspect of this scenario is the use of business policies
to determine which applications have higher priority and therefore more resources. Income
generation applications can be classified higher than the research and development or
innovation drivers. For several months, IBM has undertaken a cloud infrastructure that
adjusts the computer resources appropriately and automatically according to business
policies.
Hobbies
Amazon CloudFront
ParaScale Software solution for creating, managing and storing energy in the
cloud
Platform Cluster and network management software cloud
RightScale RightScale cloud management platform
Salesforce Cloud infrastructure.
Scalable Infrastructure
Switch High security, mission critical and interconnection of natural disasters,
Communications co-location of services
Group
Univa UD Products of private cloud, cloud and intelligent hybrid cloud
VMware vSphere virtualization data centers.
Private Cloud
Global markets are about to achieve significant growth as search engines use efficient
automated process to drive new advertising and communications capabilities. Applications
can be built without programming.
Systems are poised for significant growth as Web-based applications are used to implement
an automated process. A computer system in the cloud has many aspects to a wide range of
industries moving to leverage the Internet as a channel. The information available in the
cloud is expected to increase substantially in 2015.
Google: Google has always imagined and prepared for this change in the scale of the amount
of information to manage. For the clouds to reach their potential, they need to be as easy to
program as it is to surf the Web. This new program opens growth markets for cloud search
and software tools. Google and a lot of other companies offer application development
without programming capabilities for users.
In general, Google likes to start freely. Advanced users have some of the costs. Google is
perhaps reaching the limits of current hardware architecture with the need to rethink the
power settings and the server. The mainframe can operate at 10 times the savings of
distributed systems in most cases and represents a replacement of hardware configuration
based on the cloud that is more efficient due to its ability to share workload. This is
significant in the scale of cloud computing that Google provides.
Developers can use a test application infrastructure in the cloud. This is saving time and
money compared to traditional test scenarios. More extensive testing and speeding up the
development of transfer operations is achieved. Users can get a transparent view of
application performance, reliability and scalability. Extensive testing can be done before
going into production. Users can test multiple architectures, variables, components and
configurations easily and independently. To proceed with the deployment in the cloud,
developers can push the debug test environment live in a few easy steps.
IBM: IBM is able to leverage its market power to support innovation SOA, providing
software that supports flexible response to changing market conditions. SOA reaches all
sectors and all sectors of the economy through cloud computing. SOA drives innovation for
large businesses. Mid-sized companies and range from very small organizations are adopting
technologies similar to what the business use, creating an automated process to replace
manual process. The cloud computing market at $ 36 million in 2008 is expected to reach $
160.2 billion in 2015. Advertising has served to cloud computing. Markets consist of search
engines, communications technology, and application development without coding and
automation of the CRN.
Marketing Strategies:
The wide range of services in the category of cloud computing will change the technology
industry significantly. New business models of suppliers will be evident in each "pillar" of
the taxonomy of the cloud, with different market dynamics and evolution, from incubation of
mass adoption. Vendors will also develop new models of engagement with business
customers, for example, focuses on the standardization of applications compared with
customization. And strategists face an increasing shift in the spending of user of the products
(computers) to services (computing).
Software-as-a-service (SaaS) are in widespread use, while new services business process
people centric are about their age division on the market non cloud origins. Statements the
cloud in general tend to be sense given the variety of market segments, each of which is
driven by different business models, revenue streams, and buying behaviours. Although
business models could be significantly different in the different pillars of the business value
of the taxonomy, we can identify some common characteristics:
· The private cloud is a licensed tool and consulting market. When a company makes a
private cloud instead engagement model between IT and the business within the business
changes. The IT department is no more than a cost center, is a provider of services that are
funded by contributions operating expenses of the business units. Forrester sees a new
generation of tools in development, CIO help provide the internal infrastructure of property in
the style of a cloud. The market for private cloud includes virtualization tools, management
software and middleware platforms with multi-user capabilities. Therefore, these segments
are aggregations of parts of the traditional markets for enterprise software license, as well as
consulting services that help corporate data centres to undertake a transformation of clouds.
In the middle between public clouds and private clouds, hosted (virtual private) cloud
services combine the economies of scale from an external supplier, with a little knowledge
and customization for a single business customer. A provider of IT outsourcing or hosting
can become a virtual private cloud provider if you keep the privacy of customers by
understanding customers' business principal. Organized (VPN) infrastructure must appear as
an internal resource centre, while the data from an external source. Ideally, these offers are a
full service model and the end customer does not buy any software license or real hardware,
plus network connectivity.
The business model of a hosted cloud provider (VPN) is attractive for IT outsourcing and
hosting companies if they focus on a limited number of very large customers rather than a
mass of anonymous clients that make up the market public cloud. As examples, Fujitsu
Services, IBM, Siemens IT Solutions and Services, and T-Systems are becoming part of their
traditional outsourcing business in this style. The portfolio also includes vendors such as
cloud / legacy integration services, such as creating access to the corporate identity
management.
Both providers and users to create radically new ways of relating to others in the purchase
and sale of services in the cloud:
· Diversity Cloud provider replaces a single provider of supply for users. Precloud times,
business users tried to consolidate suppliers to a minimum number of hardware and software
providers, the cloud, however, will bring a greater diversity of suppliers. For example, many
companies follow a strategy of a single source provider and ask all the requirements of
business applications from their preferred enterprise resource planning (ERP) vendors
first. However, when a company is considering a CRM implementation and to the signing of
the cloud, Forrester has been seen that the current provider is not even invited to the Request
for Proposal (RFP), and the seller is not a traditional visionary break existing software
deployment model. Instead the focus of previous consolidation provider, IT users are
beginning to embrace the cloud orchestration, combining the logic of the internal systems
with a CRM or Business Intelligence (BI) application in the public cloud, for example.
· The providers focus on the standardization of applications and platforms, not
customization. Cloud computing significantly alters the practices of the vendors also. In the
past, business application vendors offer adapted successfully to all types of customer needs
adding more options for customizing standard products, at the request of some of its major
customers. The results were complex implementation projects and the erratic behaviour of the
application packages misconfigured. In contrast, the cloud providers are most successful are
those that convince most influential customers to live with the standard application logic. To
reach a high market share of SaaS, a vendor should not really listen to customers for some
time. For example, salesforce.com basically rejects the extension of its packaged application,
but has established a standardized platform where customers or independent software vendors
(ISVs) can develop extensions. This prevents the application of CRM in a nucleus of high
growth, the main route.
· Some vendors will be separated from his cloud and legacy business. Most traditional
ERP vendors who tried to offer an alternative SaaS painfully realized that SaaS is a totally
different business model. The style of the strategy of the cloud provider's software is so
different from the existing corporate culture will be easier to split the business of SaaS in a
fully independent business entity. They manage to standardize portions of its offer in a hosted
model (VPN) delivery of clouds. But again, the more traditional hosting companies will be
out of the fight or an offer of public cloud infrastructure.
Revenues for the market segments of different cloud computing will not appear as the new
money in the technology industry! Most categories of clouds will win purely market size by
moving the user spending in existing markets. Some are mixed contributions and potential
cannibalization net purchase again, but we have not identified any market rises only cloud the
market volume. Infrastructure-as-a-service, for example, replacing, in many cases, the cost of
a user in real hardware is not mission-critical servers. Obviously, the use of equipment below
the offer IaaS provider in the cloud is much larger than individual development machines. So,
as this part of the changes in hardware costs for cloud services, which will decrease by about
30%, at the same time.
Cloud computing represents both a threat and an opportunity for ICT providers. Strategists
should consider the threat of reduction of current income and the substitution of new cloud
providers and the opportunity to develop disruptive business models that can identify some of
the revenues of change. Cloud computing will have a profound effect on how the
functionality will be delivered, priced and consumed. The paradigm shift will be a
fundamental change in the direction of investments in IT and computer buyers become
subscribers of computing away from the capital expenditure on technology products
(hardware and software) to investments made through Operating expenditure budgets of the
services.
Short Term: Cloud accelerates the shift to services
The outsourcing of services focused on people has taken place over many years under the
label business process outsourcing (BPO), a billion dollar business annually. Traditional BPO
is not cloud computing, however, the contracts usually last for five or even 10 years, which is
the opposite of elastic payment for using the consumption pattern that characterizes the cloud
services. Therefore, do not include traditional BPO services' information and business
processes "pillar of our taxonomy of cloud computing. However, we expect that new
categories of cloud services that will emerge over time, based on a combination of human-
based service delivery models of style in the cloud. We predict these new services will create
huge volume elasticity at an attractive price for each of the three levels of distribution of
resources:
· The traditional BPO services gradually change the dynamics of BPO services. Similar
to the traditional application outsourcing, which gradually moves to the services of dynamic
applications, Forrester predicts an evolution of the traditional services of BPO services in
dynamic BPO. While maintaining a certain customer privacy, the dynamics of BPO services
will differ in style characteristics of clouds. One example is a BPO-style outsourced HR
department, which might move a customer’s entire HR department, including staff and IT
systems, to an external provider. A dynamic BPO service would give customers the option to
move some but not all processes into the cloud and to keep some staff inside the company.
Customers could request additional business process volumes (including staff) in a self-
service style from the provider with flexibility similar to what we see between private and
public IT infrastructure.
Future shared services centers will embrace internal private cloud engagement models.
The in-house alternative to BPO is also not new. It is a shared service center that
consolidates, for example, all HR departments of all business units of a larger corporation
into one corporate facility. This type of shared services center used to be one physical
location in many cases, but it can also be a virtual shared services center. The important
differentiator is the way the shared business services are charged to the business units. If, in
addition to the peoplecentric efforts, the total cost of IT systems are charged in a transparent
pay-per-use model (with the shared services center basically making the same evolutionary
step into a business process virtualization), than the pure data center has transformed from a
virtualized hardware landscape into an internal private cloud approach.
· The cloud broker. In the same way that a travel agent represents multiple airlines, we
expect that once many comparable providers of standardized cloud services are on the
market, potential subscribers would ask a broker to recommend the service that best fits the
company’s requirements.
· The cloud-legacy application integrator. The distributed location of data and business
logic embodied in a hybrid federation of cloud computing and traditional computing will be a
huge challenge to middleware software stacks and their providers. Forrester calls this
challenge “cloud orchestration” and the corresponding consulting services “cloud/legacy
integration.
Recommendation:
· Target the appropriate segment of the cloud market: Forrester’s cloud computing
taxonomy is a comprehensive classification of cloud services and tools. Vendor strategists
should use this to understand and compare the upcoming offerings of partners and
competitors by mapping their current portfolio to the taxonomy. Marketing managers can
identify which areas of their current portfolio are suitable for cloud messaging at all and
which portfolio elements do not show any of the cloud characteristics and should not be
“cloud-tagged.”
· Select the middleware battlefield carefully: Middleware vendors can try to host their
PaaS technology stack on their own, as Microsoft is doing by hosting Windows Azure.
However, this damages partnerships with outsourcing providers that like to contribute the
value of hosting on their own. The cloud infrastructure software market can still be a software
tools market. In contrast, Oracle, for example, relies on partnerships to host its just-launched
PaaS offering. Partners may be pleased not to face another competitor but will challenge the
provider of the PaaS technology with multitenant and management efficiency requirements.
If smaller middleware vendors neither host their PaaS offering nor provide a PaaS stack to a
hosting partner, they should at least implement sophisticated cloud/legacy integration
capabilities to stay competitive.
Shift hardware sales from enterprises to cloud service providers. The server hardware
sold to end users is under the biggest price pressure of all. And the competition from the
cloud is actually intriguingly dangerous: Customers will not negotiate for some standard x86
server; they will simply stop issuing RFPs and source some portions of their workload
requirements from the cloud. Therefore, hardware vendors will not see their competitors
winning these deals. The corporate data center hardware market will simply never fully
recover from the economic downturn of 2008 to 2009. Hardware vendors need to identify a
ew channel approach for the increasing volumes required by cloud providers. New
partnerships with virtualization tool and PaaS technology stack vendors will help enable this
new class of hardware sales.
_______________
Appendix:
1. Forrester introduced the concept of Smart Computing in December of 2009. See the
December 4, 2009,
“Smart Computing Drives The New Era Of IT Growth” report.
2. September 9, 2009, “Best Practices: Infrastructure-As-A-Service (IaaS)” report.
3. Forrester is currently exploring in multiple reports the IT-to-BT shift for CIOs.
For the initial introduction of the impact to vendor positioning, see the January 16,
2008, “Introducing Forrester’s Vendor Positioning Review” report.
4. Forrester defines digital natives as individuals who “were born in the late 1990s,
having been raised in a world in which Internet and mobile were commonplace.” See
the April 26, 2007, “European Mobile Youth Consumer Survey, 2007” report.
5. Forrester predicts that consumer expectations will change. Work- and private-life
related applications and data should be accessible together from a single mobile
device or desktop or any other device. See the July 6, 2009, “The Personal Cloud”
report.
6. For Forrester’s introduction to the danger of cloud washing, see the July 24, 2009,
“How To Message ‘Cloud’ Offerings And Not Get Lost In The Fog” report. For a
description of the challenge to an initial version of Forrester’s cloud taxonomy, see
the July 30, 2009, “Yet Another Cloud” report.
7. For a detailed analysis of the platform-as-a-service (PaaS) market size and a maturity
model of the softwareas- a-service (SaaS) market, see the July 13, 2009‚ “Platform-
As-A-Service Market Sizing” report, and see the August 14, 2008‚ “Forrester’s SaaS
Maturity Model” report.
8. Bessemer’s Top 10 Laws of Cloud Computing and SaaS : By: Philippe Botteri, David
Cowan, Byron Deeter, Adam Fisher, Devesh Garg, Bob Goodman, Jeremy Levine, Gary
Messiana, Anil Sarin, and Sarah Tavel
9. Cloud Computing: By Andy Bechtoisheim, chairman & co founder, Artista Networks, 2008
10. Cloud Computing: By Greg Boss, Padma Malladi, Dennis Quan, Linda Legregni, Harold Hall
11. Cloud Computing: A collection of working papers By Thomas B Winans & John Selly Brown
15. December 30, 2009, “Market Overview: The Middleware Software Market, 2009” report
April 22, 2009, “Oracle’s Sun Acquisition Is A Game Changer” report
16. Source: “Capgemini Makes Cloud Computing for the Enterprise a Reality with Amazon Web
Services,” Capgemini press release, November 18, 2008
(http://www.us.capgemini.com/services/serv_pressrelease.asp?ServID=6&ID=718).
17. See all the HiPODS white papers at
www.ibm.com/developerworks/websphere/zones/hipods/library.html
18. McKinsey & Co. Report presented at Uptime Institute Symposium April 18, 2009. Clearing
the Air on Cloud Computing. http://uptimeinstitute.org/content/view/353/319;
http://images.cxotoday.com/cxoimages/storyimages/matter101157.pdf (accessed November
27, 2009).
19. Clash of the Clouds. The Economist October 15, 2009.
http://www.economist.com/displaystory.cfm?story_id=14637206 (accessed November 15, 2009).
20 Proffitt, A. Pharma’s Early Cloud Adopters. BioIT World, Novem/December 2009, pp.31- 32.
21. Microsoft Sidekick users lose data.
http://www.telegraph.co.uk/technology/microsoft/6316609/Microsoft-Sidekick-users-lose-
data.html (accessed November 28, 2009)
22. Farber, R. Cloud Computing: Pie in the Sky? ScientificComputing.com, November/December
2009
23. Davies, K. Amylin, Amazon, and the Cloud. BioIT World, November/December 2009, pp. 35,
42.
24. Davies, K. The “C” Word. BioIT World, November/December 2009, pp. 24-26, 42.
25. Davies, K. Cycle Computing’s Tour de Cloud. BioIT World, November/December 2009,
pp.28-29.
26. Mullin, R. The New Computing Pioneers. Chem. Eng. News 2009, 87(21), 10-14.
27. Heritage, T. Hosted Informatics: Bringing Cloud Computing Down to Earth with Bottom-line
Benefits for Pharma. Next Generation Pharmaceutical, Issue 17, October 2009.
http://www.symyx.com/micro/hosted-informatics/ (accessed November 29, 2009).
28. Describing the Cloud. Details of CambridgeSoft’s Hosted Computing Environment.
http://chembionews.cambridgesoft.com/WhitePapers/PDF/DescribingTheCloud.pdf (accessed
November 28, 2009).
29. Report on ChemAxon Users Group meeting.
http://www.chemaxon.com/UGM/09/09_UGM_report_Warr.html (accessed November 28,
2009)